Friday, September 11, 2009

After Government employees, it is now the turn of public sector executives to reap the pay revision bonanza. On Thursday, the Union Cabinet gave its nod to a pay enhancement for officers of Central Public Sector Enterprises (CPSEs). This will be implemented with retrospective effect from January 1, 2007.

The government has approved an average 96% increase in salaries of those working in central public sector enterprises (CPSEs). The increase has been higher at the top, with salaries of CEOs of profit-making CPSEs rising by nearly 300%. In addition, employees could also receive up to 200% performance-related pay(ntpc pay revision) as well.

What’s more, the revised salary would be applicable from January 1, 2007, which means these employees would receive fat arrears as well. This would translate into an extra burden of Rs 9,000 crore every year on the CPSEs. This should also help provide some consumption boost to the slowdown-hit economy.

It is also for the first time that the Government is introducing performance-related pay (PRP). Besides, the highest ceiling for gratuity payment has been increased from Rs 3.5 lakh to Rs 10 lakh (could also be the same for ntpc pay revision).

A rough comparison with the recently approved revised pay-scales for Government employees shows that the B level company CMD could earn a maximum basic of Rs 90.000 per month, which is at par with the Cabinet Secretary. While the minimum basic for a CMD of an A category company would be Rs 80,000 per month, which would be at par with the maximum basic pay of a Secretary

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Anonymous
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I want to draw your attention towards the disparity in pay revision done by the government(OIL MINISTRY) for executives joining before and after 01.01.2007.The government have discouraged the new executives to join the psu and created frustration by giving less salary to executives and fresh engineers joining after 01.01.2007 whereas the engineers and executives joining before 01.01.2007 at the same level are drawing more salaries .This is utter non sense that the DPE has not given Fitment benefit for the executives and non unionised supervisors who have joined after 1st Jan 2007.This is not at all justified.It will take around 6 years to catch up the salary of those,Who have have joined on or before 31.12.2006.New Joinees should not accept this Step motherly treatment.And the revision should cater to all section of employees. It is totally wrong decision of pay revision committee that they have not given fitment benefit for those executives and non unionized supervisors .while the private companies are offering out of scope to woo new entrants to their organization.in my view the pay revision committee should comprise young blood so that they can feel the needs of the young mass.otherwise in job advertisement PSUs should not specify SALARY IS DUE REVISION. I would request you to highlight this issue and requset the government to pass an amendment to the DPE guidelines issued earlier so that the disparity in salary structure for those joining before and after 01.01.2007 is removed and that all should get equal salaries at the same level.